Mercadona case (II)

In this post one of my last contributions to this blog let me introduce some key factors related with two of the most important companies in the Valencian Region and in Spain. On the one hand, I would present Consum supermarket. This company was born in my town, Alaquàs , in 1975. On the other hand, Mercadona was founded in 1977 within the group Cárnicas Roig. The first Mercadona supermarket was emplaced in Tavernes Blanques and opened their doors in 1977. See Images 1 and 2.

Image 1-2. First Mercadona and Consum stores. Reproduced from <http://bit.ly/25Hybkt&gt; and <http://bit.ly/1O9nrDC&gt;. [Accessed: 06/05/2016]

Some months ago I had a great experience in the local market, the butcher woman told me about the critical situation of the economy and the quality of the products introduced in the local market. She introduced to me an unknown fact, the second Mercadona supermarket was emplaced in Alaquàs changing the consumption habits of the customers forever.

The rivalry between these two models is very clear; Consum is a cooperative model which includes workers and consumers partners. Mercadona is directed by Juan Roig and is configured by 100% Spanish and familiar capital. Mercadona include in their offer “intreproveedor” products like Hacendado, Deliplus, Bosque Verde. Consum offers a wide variety of brands and their own Consum brand. The price depends on the product but Consum is slightly more expensive. Both are emplaced in well positioned areas within cities. See Images 3 and 4.

Outline-Mercadona-Model

Image 3. Outline of the Mercadona model. Reproduced from <http://bit.ly/1WB1gbU&gt;. [Accessed: 06/05/2016]

Mercadona Business Model

Image 4. Mercadona system. Own elaboration. [Accessed: 06/05/2016]

Nowadays Consum has more than 660 supermarkets between Consum, Consum Basic and franchises Charter. The collective consumer member now exceeds 2,600,000 people. Mercadona has presence in 50 provinces of 17 regions with a total of 1,587 convenience stores (05/06/2016). This supermarket satisfy the needs of 5 million household. Despite the different strategies both supermarkets have a strong dominance in the Levante area.

In the following section the logistical aspects of both companies are presented, see Image 5 and 6:

mercadona

Image 5. Mercadona Logistics. Reproduced from <http://bit.ly/1tatbnd&gt;. [Accessed: 06/05/2016]. *This source has been modified.

Consum

Image 6. Consum Logistics. Reproduced from <http://bit.ly/1cowc6O&gt;. [Accessed: 06/05/2016].

Deeping in the Mercadona case related with my first post (http://bit.ly/1Xuv5M0) I would present some interesting issues related with Logistics. See the information presented below, see Images 7 and 8:

HR

Image 7. Abstract of the Mercadona business model divided into Human Ressources, Processes, Customers and Finance . Reproduced from <http://bit.ly/1pFdxfd&gt;. [Accessed: 06/05/2016].

merca1

Image 8. Mercadona Logistis distribution. Reproduced from <http://bit.ly/1UrhY7m&gt;. [Accessed: 06/05/2016].

Interesting data about the supplier:

  • “14,900 million euros of purchases in Spain, 85% of the total
  • 120 integrated supplier-manufacturers
  • 500 million euros invested by integrated suppliers
  • 30 new factories and production lines
  • +2,000 commercial and service suppliers
  • +20,000 small and medium enterprises (SMEs) and raw material producer (Annual Report 2014).”

Finally, in this Logistics fence it is essential differentiate between the Retailing’s Vicious and Virtuous Cycles, see Image 9 and Videos 1 (0:59-1:30) and 2 (07:00-08:10):

R1201L_A_LG

Image 9. Retailing’s Vicious and Virtuous Cycles. Reproduced from <http://bit.ly/1D3kBDU&gt;. [Accessed: 06/05/2016].

 

Video 1.Spanish retailer bucks trend <http://bit.ly/25Hzekc&gt;. [Accessed: 06/05/2016 ]

Video 2. Mercadona Logistics Center <http://bit.ly/1VGajHt&gt;. [Accessed: 06/05/2016 ]

Recommended references:

http://bit.ly/1D3kBDU

http://bit.ly/1Pxpxxj

http://bit.ly/1WB1gbU

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